POLITICS: Texas is under fire by the Biden administration involving the matters of taxes, the White House states as being distinguished along racial lines. In a recent evaluation of US tax status, the state of Texas is the flag-raiser registering at the top of an apparent IRS 2023 records, such records that make a number of things clear—Texas black residents are paying a higher tax rate compared to white residents.
By Michelle Crawford-Sapenter
President Joe Biden’s administration has made several decisions involving taxes. For instance, he has proposed that corporations would no longer be able to deduct the expense of employee pay above $1 million, which could raise $270 billion over 10 years.
The Biden administration has considered raising the corporate tax rate to 28% from 21%1. Furthermore, President Biden has secured major reforms to crack down on corporate tax avoidance and ensure that large corporations start paying more of their fair share.
It’s important to note, however, that tax laws in the United States, including Texas, are not designed to differentiate between taxpayers based on race. The IRS does not collect information on race and ethnicity on tax returns.
While ethnicity does not play a role in determining the rate nor amount of taxes paid to the IRS, there have been studies indicating disparities in the benefits of tax expenditures among White, Black, and Hispanic families.
The IRS indicates that Black and Hispanic families, who make up a disproportionate share of low-wage workers, disproportionately benefit from the Earned Income Tax Credit. Moreover, a study has shown that Black taxpayers who file for the Earned Income Tax Credit are three to five times more likely to be audited than non-Black taxpayers. These disparities are not a direct result of tax laws but rather an outcome of systemic issues.
Comments